Summary for Week Ending 19th August 2006
Whilst the ongoing drama of the London terror stuff is still unfolding, the peace brokered in the Middle East had the greatest impact this week with a softening in Oil prices. Its just a softening at present as we are yet to see any real weakness when it comes to this commodity, and it is still hypersensitive to international events, especially any that impacts on stability in the Middle East.
Last week...
As such the markets to some heart and managed a rally of sorts, destroying the possibility of a drive off the double top that was briefly in place. Looking at the chart it does look a little expansionary with a basing pattern around the two lows of Ju8ne and July. the 4 day retracement that brought in the low last week is also giving a bullish highlight, however I don't believe that this will amount to anything real, at least not just yet.
I'm still keeping with my belief that the market will dilly-dally sideways for some time yet and whilst it may produce some trending behavior, I believe it will be range bound ( even though its a very big range).
It will be interesting to see if the bullishness of the past week can follow through. Minor support is the 4th Aug high after which there is nothing stopping the Aug low from being taken out. Not necessarily this week, ut its where the markers are at present.
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